US and global corn stocks projected lower
Record-high farm prices for corn in 2010/11 are expected to ration demand of corn over the coming months, concludes the US Department of Agriculture in its monthly Feed Outlook for February.
This month, increases in demand are pushing ending stocks lower, in contrast to last month when lower production was the driver.
Corn use continues to be strong, pushing projected US ending stocks relative to use to their lowest post-World War II levels since 1995/96.
Total domestic use of corn is increased by 70 million bushels, with most of the increase in corn used for ethanol. With no changes to supplies, corn ending stocks are lowered 70 million bushels.
The corn farm price forecast is increased by 10 cents to $5.05 to $5.75 per bushel.
World coarse grain production trimmed
World coarse grain production for 2010/11 is reduced this month with a smaller expected corn crop in Argentina.
World corn ending stocks for 2010/11 are projected lower, with higher usage in the United States and a smaller carryin in Brazil.
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